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Samuel invested money in his bank account. he had a principal, p, of $100 in his account at the beginning of the period, which increased at a rate, r, of 0.15 per year. at the end of the period, he had interest, i, of $105 in his account. use the simple interest formula i = prt, to solve for the time, t, in months that it took to earn this amount. (1 point) 7 months 58 months 84 months 700 months

Answer :

The correct answer is 700 months .

What is simple interest?

  • Simple interest is based on the principal amount of a loan or the first deposit in a savings account.
  • Simple interest doesn't compound, which means a creditor will only pay interest on the principal amount and a borrower would never have to pay more interest on the previously accumulated interest.

Given,

         I = 105

         P = 100

            r = 0.15

Now use simple interest formula,

      [tex]S.I. = \frac{p * r* t}{100}[/tex]

105=100×(0.15)×(t)

Swap sides so t is on the left.

100 ×(0.15)×(t)=105

Divide both sides by 100.

0.15t=1.05

Divide both sides by 0.15

t=700

So, we see that it takes 700 months to earn this amount.

Learn more about Simple interest

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